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Join Date: Mar 2003
Posts: 12,833
Car rental economics
We are going on a trip to visit DW's family next month and wanted to rent a car while we are there. We made a reservation with Hertz a few months ago when we bought the plane tickets. The cheapest thing that would reasonably fit all of us was a "midsize SUV" described as a RAV4, Ford Escape, etc. Total tab was $665.
Flash forward to today. I checked prices again and found that I could get a small car (and squash us all in) for $500 or so. Large cars, minivans, etc. ran $600 to over $1000. But a midsized SUV was offered by another rental company for $345. Sold. Made the new reservation, cancelled the old one. No way on earth will I burn enough gas to come anywhere near the price differential between the SUV and something else.
Is there that much media influence on consumers that they are making foolish decisions like this? I suppose I shouldn't be surprised, but I am.
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I've noticed (and heard) that rental car companies are offering a lot of "free upgrades" to people who have small cars reserved after they come to the rental counter.
By the way: the "media influence" you talk of is similar to the influence which panics people into selling stocks low and eggs on their irrational exuberance to get them to buy high. And it's the same influence which has them trying to unload their SUV at a $10,000 loss which would take MANY years of burning $5 gas to recover from. So I"m totally not surprised.
__________________ "Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
Heh, you won't catch me trying to unload my rolling money pit big toy anytime soon. I figure I'd take a $20-25k haircut to "save" $2-3k per year in fuel costs. Even with my limited education I can see the math doesn't add up.
I've been offered those free upgrades. Two weeks ago, I drove a PT Cruiser off the lot instead of a compact car. They never seem to offer a free upgrade to a convertible.
Along the same vein, the rental "Green Collection" cars cost a lot more than the same-MPG "economy" cars.
After two of us, a dog and a bird living in a 23.5 foot MH for a month and a half I am ready to buy a big MFing motorhome.
Not seeing the deals one should see out there.
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I just came back a week ago from a vacation in Scotsdale Arizona and we drove to San Diego CA for 3 days as well. Received a weeks rental of a Ford Escape for $22 a day for a weekly rental, plus taxes which are considerable in Arizona, total was $257 for the week. The only car offered cheaper was an Aveo for $21 per day.
Of course the gas in San Diego was $4.79 per gallon......
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Join Date: Mar 2003
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Quote:
Originally Posted by REWahoo
Heh, you won't catch me trying to unload my rolling money pit big toy anytime soon. I figure I'd take a $20-25k haircut to "save" $2-3k per year in fuel costs. Even with my limited education I can see the math doesn't add up.
Heck, its easy to save fuel with a MoHo. Park it. Do so at a park if you like, but its not like you'll starve or lose your job by doing so.
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"To be a man means that you are brave, loyal and true. When you are in the wrong, you own up and take your punishment. You don't take advantage of women. As a husband, you support and protect your wife and children. You are gracious in victory and a good sport in defeat. Your word is your bond. Your handshake is as good as your word... When the ship goes down, you put the women and children into the lifeboats and wave good-bye with a smile." C Murray
After two of us, a dog and a bird living in a 23.5 foot MH for a month and a half I am ready to buy a big MFing motorhome.
Not seeing the deals one should see out there.
I'm seeing some reasonably good deals on Craigslist, but you know you'll have to get serious and make someone an offer to see how soft prices really are. If fuel prices don't ease up I'll bet some folks will start getting a little desperate in a few months.
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Quote:
Originally Posted by REWahoo
I'm seeing some reasonably good deals on Craigslist, but you know you'll have to get serious and make someone an offer to see how soft prices really are. If fuel prices don't ease up I'll bet some folks will start getting a little desperate in a few months.
Desperation has not set in yet, but the prices of nice fishing boats are beginning to fall............
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
But a midsized SUV was offered by another rental company for $345. Sold. Made the new reservation, cancelled the old one. No way on earth will I burn enough gas to come anywhere near the price differential between the SUV and something else.
You'll have to wait until after you're done with the car. Have you seen the Seinfeld episode on "But I have a reservation!?!?"
I fear that the cheaper rental company will be absolutely vicious and full of scare tactics about upselling. (They probably don't know you well enough to recognize the error of their ways.) Last summer we also got nailed by the "damaged windshield" scam. So now before we drive away we walk around (in plain view of the staff) taking digital photos of the car.
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 12,833
Quote:
Originally Posted by Nords
I fear that the cheaper rental company will be absolutely vicious and full of scare tactics about upselling. (They probably don't know you well enough to recognize the error of their ways.) Last summer we also got nailed by the "damaged windshield" scam. So now before we drive away we walk around (in plain view of the staff) taking digital photos of the car.
I avoid one of the rental agencies at the airport we are flying to because they are extremely aggressive on the upsell and the pricing strategy is sleazy ("what, you want us to come deal with the car we gave you if it falls apart on the road? That will be an extra $2 a day.").
I usually give the rental agent the smackdown early on and that's it. I am very, very careful with the walk-around since I did a short stint as a car rental agent in my youth.
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"To be a man means that you are brave, loyal and true. When you are in the wrong, you own up and take your punishment. You don't take advantage of women. As a husband, you support and protect your wife and children. You are gracious in victory and a good sport in defeat. Your word is your bond. Your handshake is as good as your word... When the ship goes down, you put the women and children into the lifeboats and wave good-bye with a smile." C Murray
We always have used Hertz. Never ran into a problem with them. This spring in TX. Our car would not start without a jump when we were leaving from our relatives. We told Hertz. The lady at the desk gave us a 50.00 dollar voucher to use anytime. Quite pleased with them. Knock on wood.
But Im going to do the photo shoot next time before we leave and after we get back. Thats a good idea. Never dawned on me.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 5,499
Quote:
Originally Posted by 73ss454
Not to mention Motor Homes.
It's amazing how much touring you can do on a single tank of fuel. We're over 2 months and have thoroughly explored northern CA and 2/3 of the OR coast and stayed at 10 different spectacular locations. Keeping our fingers crossed that we can finish the OR coast tour before another fuel up is required.
Diesel is up 60 cents a gallon since we last filled the MH on May 2. Of course, it's past double what it was when we started our adventure 3 years ago.
But still, it's those long distances crossing the country that kill you. I know we'll be feeling the bigger pinch when we head back into the interior....
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 11,920
Quote:
Originally Posted by audreyh1
It's amazing how much touring you can do on a single tank of fuel. We're over 2 months and have thoroughly explored northern CA and 2/3 of the OR coast and stayed at 10 different spectacular locations. Keeping our fingers crossed that we can finish the OR coast tour before another fuel up is required.
Diesel is up 60 cents a gallon since we last filled the MH on May 2. Of course, it's past double what it was when we started our adventure 3 years ago.
But still, it's those long distances crossing the country that kill you. I know we'll be feeling the bigger pinch when we head back into the interior....
Audrey
Do you have the "super duper" 250 gallon tank??
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 12,833
Quote:
Originally Posted by saluki9
I'm thinking the rental car companies are hurting.
My wife and I are going to Vegas this week and the going rate for a midsize car was $9-$12 a day.
Except for Hertz which was stuck at $50 a day.
We are getting the cornhole on rates because there is a major event going on in town the following week and I suspect we are getting hit by it. But I will be watching car rental rates carefully to see if they really go into the ditch.
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"To be a man means that you are brave, loyal and true. When you are in the wrong, you own up and take your punishment. You don't take advantage of women. As a husband, you support and protect your wife and children. You are gracious in victory and a good sport in defeat. Your word is your bond. Your handshake is as good as your word... When the ship goes down, you put the women and children into the lifeboats and wave good-bye with a smile." C Murray
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